Los Angeles City Employees' Retirement System terminated Franklin Templeton Investments, which managed a $179.7 million active U.S. high-yield fixed-income portfolio, the agenda for the $13.7 billion pension fund's March 8 board meeting shows.
Franklin was terminated for personnel changes and performance. The manager's portfolio will be transferred to Aegon USA Investment Management's active U.S. high-yield bond strategy benchmarked to the Barclays Capital U.S. High Yield 2% Capped index. Aegon is an existing manager. Aegon managed $154 million for LACERS as of Dec. 31.
Pholida Barclay, Franklin Templeton spokeswoman, declined to comment.
Wilshire Associates, LACERS' general investment consultant, assisted.
Separately, the board at its upcoming March 22 meeting is scheduled to decide whether to redeem its $46 million investment in real estate open-end fund PRISA II, managed by Prudential Real Estate Investors, for performance. Mayura Hooper, spokeswoman for Prudential, declined to comment. Real estate consultant Townsend Group is assisting.